The good news for Tesla Motors is that the company has plenty of cash on hand thanks to government grants and an incredibly successful initial public offering that raised $226M USD.  The bad news is that the company is burning through cash fast as it attempts to develop new vehicles and expand its distribution network.

Reporting financials for the first time as a publicly traded company, Tesla just announced a loss of $38.5M USD for its second fiscal quarter, 2010.  Year-to-year it reports its revenue rose 5 percent, to $28.4M USD.  A year ago the company only lost $10.8M USD, though.

Tesla is looking to begin producing and selling its upcoming Model S mass market luxury sedan in 2012, priced at $57,400 USD.  The car will retain some luxury trappings and have a range of 160 miles.  Tesla will produce the new model at the the former NUMMI factory, located in Fremont, California, which it obtained from Toyota as part of a joint development deal.  The factory had been scheduled close after former co-operator GM pulled out, in the wake of its bankruptcy.

Tesla also has a hand in the development of an electric version of Toyota's RAV4 crossover SUV which will also hit the market in 2012.  Toyota gave Tesla a relatively meager $50M USD to help develop the plug-in, but also gave it access to the NUMMI plant and other perks.  Tesla also recently revealed that it is developing 3 other vehicles internally -- another crossover/SUV, a Cabriolet, and an electric van.

Tesla also has been opening new stores in recent months.  Last month it shipped its first Roadsters to Canada and Japan.

For Tesla, its current financial predicament basically boils down to weathering the storm, which is never an easy position for a company.  If the company can stay afloat through 2012 and make its deadlines for the Model S and Toyota RAV4 vehicles, it will be poised well to return to its short-lived profitability of 2009.

In total Tesla has already lost more this year ($68M USD) than it did all of last year ($55.7M USD).  One promising sign, though, was that Tesla significantly improved its gross margin to 22 percent, up from 8 percent from a year before.  Gross margin is a measure of profitability that weighs production costs versus sales costs.

While still above the $17 IPO price, shares of Tesla (TSLA) have plummeted from a high of $22 earlier this week to $19.80 following the financial report.